Term: Fundless sponsor

A private investment firm typically a private equity firm that gathers capital on a deal by deal basis as opposed to having a committed blind-pool fund from which to draw. Fundless sponsors sometimes called pledge funds typically have a network of investors that have the ability to review each new deal opportunity and decide whether or not to participate. This is in contrast to a blind-pool fund to which investors commit capital in advance and may not opt out of any deals. As in: Before we raised our first fund we did a bunch of deals as a fundless sponsor.

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